· Coating production to Michelin’s fuel cell manufacturing
· Delayed delivery to Huaqing Power Technology (China)


· Net sales amounted to SEK 7 141 thousand (18 451)
· Operating profit amounted to SEK -6 102 thousand (-404)
· Net income after financial items amounted to SEK -6 121 thousand (-406)
· Cash flow amounted to SEK -3 766 thousand (-12 159)
· Equity-to-assets ratio amounted to 88,9% (69,3)


During the period, we have continued working on our intensified efforts primarily in the Chinese fuel cells market, but also in greater Asia, Europe and North America. 

We see a continued strong interest in our offering and we receive increasing evidence that we have the best fuel cell coating on the market. This is based on verifications we receive from auto manufacturers that test our coatings. 

Important European order 
Interest is greatest in the Chinese market and it is there things are moving quickest. We see, however, an increased interest even in the European market, highlighted by the order from Michelin regarding production of Ceramic MAXPHASE™-coatings on fuel cell plates for their fuel cell manufacturing. The Michelin order is small but important, giving us tailwinds in discussions with other players in Europe as well as Asia.

We also see a high interest from the European auto industry for our coating systems for vehicle reflectors. 

Long lead times 
It takes time, however, for discussions and verifications to become concrete business deals. International auto manufacturers have lead times of five to seven years from the start of a new model development program to the start of production. In the Chinese market the time is shorter, but it involves in any case a couple of years. 

The market suffers at times from long lead times to produce newly constructed metal plates for fuel cells, i.e., the plates that we coat. It can take four to twelve months from drawing board to delivery. Several producers of metal plates are addressing this problem and are working to reduce the lead times. 

With respect to China, it has been relatively calm during the beginning of the year. It is normally difficult to close deals in China during the start of the year. The Chinese New Year falls in the middle of our first quarter, and causes a calm period both before and after.  

Due to the above factors, we have not been able to report any larger order during the quarter. As we reported in January, we have even received certain delays to the delivery of coating systems to the Chinese fuel cell manufacturer Huaqing Power Technology.

Clearer business approach 
During the start of the year, we have worked on creating a clearer business approach with respect to our customers, to avoid negative surprises in new markets. 

The approach entails that orders are not considered valid until pre-payment has been made, a Letter of Credit is issued, or the payment in some other way has been secured. Orders shall include only those coating systems meant for delivery near-term and for which customers have verified payment through pre-payment or where the payment is otherwise secured. 

Demo center and sales initiatives 
During the period, we have begun our initiatives on marketing and sales, including development of a demo center. 

The planned work toward creating a representative demo center in Linköping has begun. We are building two machines, one to demonstrate coating of fuel cell plates and one for vehicle reflectors. The machines can also be delivered to customers in the event a fast turnaround is needed. 

We have during the period strengthened the marketability of our offering and begun recruiting personnel to strengthen our sales capability. We have even streamlined our branding strategy and henceforth will market all of our coating machines under the product family name INLINECOATER™ and our coating processes under the product family name MAXPHASE™. 

Our partner and distributor Optorun is intensifying its work to achieve the goals of our agreement. The Japanese company has during the quarter initiated a recruiting process to further strengthen the sales team and thereby increase sales of our coating systems. 

With these actions and activities in place, we see a bright future ahead.  

Linköping 2018-04-20
Henrik Ljungcrantz, CEO Impact Coatings 


Net sales during the period amounted to SEK 7 141 thousand (18 451). Operating expenses amounted to SEK -13 243 thousand (18 855). Operating profit before depreciation and other operating expenses amounted to SEK -6 102 thousand (-404). Operating profit before tax amounted to SEK -6 121 thousand (-406). Cash flow amounted to SEK -3 766 thousand (-12 159).

As in previous years’ reporting, no provision for deferred tax assets has been made.  

Financial position and liquidity
Liquid assets amounted to SEK 61 620 thousand (9 988) at the end of the period. Work in progress not yet invoiced (accrued revenue) amounted to SEK 12 983 thousand (10 280) at the end of the period. Corresponding invoiced, not completed revenue (deferred revenue) amounted to SEK 9 778 thousand (1 842). 

Equity-to-assets ratio amounted to 88,9% (69,3). 

Cash flow from operations during the period amounted to SEK -3 696 thousand (-12 159). 

Cash flow from financing amounted to SEK -70 thousand (0). Total cash flow for the period was SEK -3 766 thousand (-12 159).


In conjunction with the fuel cell conference FC Expo held in Tokyo in February, we launched INLINECOATER™FC for the Asian market. The coating system is significantly improved in terms of productivity and is optimized for coating fuel cell plates in volume production. The launch will continue during the Hannover Messe to be held 23-27 April 2018. 

The cooperation with Optorun continues with work ongoing for existing as well as new potential customers. With support from Impact Coatings in Sweden, customer offerings are being shaped that meet market demands of advanced coating systems.

During the recent quarter, Optorun has started the recruiting process to further strengthen the sales team in order to intensify sales of Impact Coatings coating systems, and achieve the agreed goals in the cooperation agreement. Optorun has recently completed a successful IPO and is now listed on the Japanese stock exchange. 

Below we describe the status in the market segments where Impact Coatings is primarily focusing: Fuel Cells and Reflectors. The company also is working actively in Metallization/Decorative coatings and Electrical contacts.

As a step toward focusing the marketing of coating systems and coatings, partly new product names were launched during the quarter. All of the company’s coating systems now fall under the product family name INLINECOATER™. 

Fuel cells
Huaqing Power Technology has had to delay their start of production. As announced earlier via press release, this implies the delivery of the agreed coating system is pushed forward.  

China Hydrogen Energy, to which our deliveries have been delayed, is in negotiations with a larger player that is planning to take a majority ownership stake in the company. These negotiations are ongoing, and when they are complete a new timeplan for production and delivery of Impact Coatings coating systems will be agreed. 

Telos Auto, with which Impact Coatings has a cooperation agreement, is planning to migrate to metal fuel cell plates. Impact Coatings is now coating plates from Telos Auto on a testing basis for verification of Ceramic MAXPHASE™ in their fuel cell system. 

Impact Coatings has delivered coated plates in accordance with a disclosed order to a leading East Asian auto manufacturer. The time plan is aggressive and all parties involved are working together to evaluate the coating as quickly as possible. 

Fuel cell production for Michelin has started at Impact Coatings’ facility in Linköping. The work comprises the starting phase of a process through which Michelin will be able to deliver its first fuel cell system to customers. Volumes are expected to increase over time. 

Symbio FCell has also received coatings from Impact Coatings during the period. 

The number of potential customers has increased following the FC Expo in Tokyo, which is the world’s largest fuel cell conference. At the moment, we are following up contacts with prospective customers through their visiting Impact Coatings in Linköping, and production for evaluation of coatings is starting. Several of these potential customers need scalable production lines for coatings within the near future. 

Impact Coatings sees a continued increasing interest from the automotive industry in our coating system for reflectors. Above all, the possibility of integrating Impact Coatings’ system in the production flow is generating interest. The company is negotiating with several reflector producers, which in turn deliver to auto manufacturers. 

Impact Coatings has during the period developed a new application regarding coating of radar emblems. Radar emblems are a fundamental component in an application that is integrated in cars to increase safety through avoidance of pedestrians, obstacles, or other vehicles. The radar is placed behind the emblem in the car’s grill and the emblem therefore needs to have a special transparent coating. Impact Coatings has a competitive technology to coat radar emblems, and the market and customers are principally the same as for reflectors. 


Impact Coatings’ strategy is to be the leading player in its chosen segments. R&D is therefore a priority.

We continue therefore our work with improving the efficiency of the coatings required for delivering world-leading niche products. Additional projects have therefore commenced to develop the next generation of coatings and coating systems.

Impact Coatings’ development work is also focusing on supporting the manufacturing and ”productification” of the coating machines. There is also an emphasis on supporting the sales organization through focused development and testing within the prioritized market segments, Reflectors and Fuel Cells. 


The coating operations that take place in Impact Coatings’ facilities in Linköping have an increased responsibility now to support sales of coating systems. It is a clear advantage to be able to deliver customer samples quickly and with high quality, support the customer’s development and deliver pre-production smaller series, not least within the Fuel Cells market segment. 

The company also continues to develop pure subcontracting services in the different market segments. Coating of fuel cell plates is now the largest application and is expected to increase during 2018 and 2019. Among others, production of coatings of fuel cell plates for Michelin has started during the quarter.  

The coating machine being produced for Borit NV and developed under the EuroStar project Pro-FC will be ready for testing during April. The machine will first run at Impact Coatings’ facilities to tune the coating processes. Afterwards, we expect the machine to be moved to Borit’s own production environment during the third quarter this year. 

Production of the coating machine for Xin Point is proceeding according to plan and will in June be shipped from Sweden to Xin Point in China.  

Production of two demonstration machines has begun.  

Linköping 2018-04-20 
Henrik Ljungcrantz


This interim report has not been subject to auditor review. 


Annual general meeting:                                         17 May 2018                                           

Interim report for the second quarter 2018:            17 August 2018 

Interim report for the third quarter 2018:                 26 October 2018 

Year-end report for 2018:                                        15 February 2019             

For more information contact:
Henrik Ljungcrantz, CEO
Tel: +46 70-663 55 80

Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 20 April 2018, 08:00 CET.